Dodd-Frank rollback raises the asset threshold for systemic financial institutions from $50 billion to $250 billion.

Peter Prince

2018-05-21 07:39:00 Mon ET

Dodd-Frank rollback raises the asset threshold for systemically important financial institutions (SIFIs) from $50 billion to $250 billion. This legislative change exempts some banks from annual stress tests and living wills that the Obama administration designed as a safety valve to prevent another major financial calamity. As a result, this structural regime switch will provide smaller financial institutions with primary relief from the strict rules and regulations that apply to most Wall Street banks.

President Trump affirms his clear intention to sign this bill into law. The Dodd-Frank rollback tends to benefit non-systemic financial institutions, community banks, and other small lenders. However, Congress expresses the consensus view that most banks should be subject to substantially higher core equity capital requirements to safeguard against extreme losses in rare times of financial stress.

As financial intermediary capital covaries with both aggregate credit supply and household debt fluctuations, these ebbs and flows cause real business cycles and financial market fluctuations. Sticky prices and interest rates can persist over the interim period, and transitional dynamism manifests in real macro movements such as real GDP expansion, employment, capital investment, industrial production, and bank balance sheet expansion.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Most major economies grow with great synchronicity several years after the global financial crisis.

John Fourier

2018-01-19 11:32:00 Friday ET

Most major economies grow with great synchronicity several years after the global financial crisis.

Most major economies grow with great synchronicity several years after the global financial crisis. These economies experience high stock market valuation,

+See More

Congresswoman Alexandria Ocasio-Cortez proposes greater public debt finance with minimal tax increases for the Green New Deal.

James Campbell

2019-03-23 09:31:00 Saturday ET

Congresswoman Alexandria Ocasio-Cortez proposes greater public debt finance with minimal tax increases for the Green New Deal.

Congresswoman Alexandria Ocasio-Cortez proposes greater public debt finance with minimal tax increases for the Green New Deal. In accordance with the modern

+See More

Most lean enterprises should facilitate the dual transformation of both core assets with steady cash flows and new growth options.

John Fourier

2020-06-10 10:35:00 Wednesday ET

Most lean enterprises should facilitate the dual transformation of both core assets with steady cash flows and new growth options.

Most lean enterprises should facilitate the dual transformation of both core assets with fresh cash flows and new growth options. Scott Anthony, Clark Gi

+See More

San Francisco Fed CEO Mary Daly suggests that trade escalation is not the only risk in the global economy.

Rose Prince

2019-06-19 09:27:00 Wednesday ET

San Francisco Fed CEO Mary Daly suggests that trade escalation is not the only risk in the global economy.

San Francisco Fed CEO Mary Daly suggests that trade escalation is not the only risk in the global economy. Due to the current Sino-U.S. trade tension, the g

+See More

Chinese trade delegation offers to boost purchases of U.S. agricultural products to reach an interim trade deal with the Trump administration.

Peter Prince

2019-11-03 12:30:00 Sunday ET

Chinese trade delegation offers to boost purchases of U.S. agricultural products to reach an interim trade deal with the Trump administration.

Chinese trade delegation offers to boost purchases of U.S. agricultural products to reach an interim trade deal with the Trump administration. Chinese Vice

+See More

AYA finbuzz podcast offers fresh insights into the latest stock market topics, economic trends, and personal finance inspirations as of December 2019.

Amy Hamilton

2019-12-30 11:28:00 Monday ET

AYA finbuzz podcast offers fresh insights into the latest stock market topics, economic trends, and personal finance inspirations as of December 2019.

AYA Analytica finbuzz podcast channel on YouTube December 2019 In this podcast, we discuss several topical issues as of December 2019: (1) The Trump adm

+See More